GREEN TIP OF THE WEEK: LIGHT-EMITTING NOEL

It's a fact: Christmas decorations will cause a spike in your electricity bill. This year, consider purchasing strings and strands that contain light-emitting diodes, which use 99 percent less electricity than traditional bulbs.

"​Makin​g Real Estat​e Simpl​e"​
MyRea​ltorB​arbie​.​ com
Barba​ra Ann Paul-​Wibe
My Cell:​ 619-​850-​4174

HAPPY​ HOLLI​DAYS!​!​

Mortgage & H4H Update

· Early projections indicate that only 20,000 troubled homeowners will apply for the “Hope for Homeowners” program, a considerable reduction from the previously estimated 400,000 homeowners who were expected to apply. The $300 billion program was launched Oct. 1 and is designed to help troubled homeowners rewrite a “risky” mortgage loan into a 30-year, fixed-rate loan with a lower interest rate. During the first two weeks of the program, the Federal Housing Administration, which oversees Hope for Homeowners, reported receiving only 42 applications. Some housing experts believe the low application rate is due to the program being voluntary for lenders and provisions requiring homeowners to agree to an equity share with the government.

To read the full story, please click here:
http://www.latimes.com/business/la-fi-hope4-2008nov04,0,5527840.story


· Less than half of homeowners with mortgage loans through IndyMac have responded to offers from the Federal Deposit Insurance Corporation (FDIC) to lower loan payments and interest rates. The FDIC, which is running IndyMac, mailed 35,000 letters offering homeowners an opportunity to rework the terms of their mortgages. The goal is to reduce the monthly payment on a loan, including taxes and insurance, to no more than 38 percent of the borrower’s pretax income. The FDIC is prepared to implement the following: reduce the interest rate to as low as 3 percent; extend a loan’s terms to 40 years; and waive interest on a portion of the mortgage balance.

To read the full story, please click here:
http://www.latimes.com/business/la-fi-indymac31-2008oct31,0,5613024.story


· JPMorgan Chase & Co. has reported that it is instituting a 90-day foreclosure freeze while it searches for ways to make payments easier for consumers. The program may enable up to 400,000 borrowers to reduce their interest rates or principal amounts. The bank also will open 24 mortgage counseling centers in areas with the highest delinquency rates. JPMorgan also is planning to hire 300 loan counselors to work with delinquent borrowers and employ approximately 150 additional staffers to review each mortgage prior to sending it through the foreclosure process. The program offer is extended to borrowers who have loans through Washington Mutual Inc., and clients of EMC, a mortgage unit of Bear Stearns Companies. Both companies were acquired by JPMorgan in recent buyouts and takeovers.

To read the full story, please click here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aR3.7ix83s6s&refer=home


· Bank of America, which acquired Countrywide in July, said that nearly 400,000 troubled homeowners who have subprime mortgages and option adjustable-rate loans through Countrywide may be eligible for loan modifications. To be eligible for the Bank of America plan, homeowners must occupy the home as their primary residence; the mortgage must be seriously delinquent — or likely to become so; and the loan must have been serviced by Countrywide and originated prior to Dec. 31, 2007. Bank of America will help borrowers by restructuring first-year payments of principal, interest, taxes and insurance to no more than 34 percent of the borrower's income; halting foreclosure sales against borrowers who are likely to qualify for a loan modification; and waiving restructuring fees and prepayment penalties.

To read the full story, please click here:
http://www.usatoday.com/money/economy/housing/2008-10-06-countrywide-mortgages-settlement_N.htm

...The Best Time to Buy a Home... ???

The best time to buy a home

Recent economic reports and the continued decline of home prices have caused some home buyers to stay on the sidelines and try to time the market so they can purchase a home at an affordable price that will not reduce in value, and will appreciate quickly.  However, many housing advisors recommend that home buyers not try to time the market, but instead purchase a home when they are ready.  

MAKING SENSE OF THE STORY FOR CONSUMERS

·     Despite rising foreclosures, delinquencies, and unemployment rates, and declining home prices,   sales of new and existing homes are improving, which is causing some home buyers to try to “time the market.”  Many housing analysts advise potential home buyers not to base their homebuying decision on economic reports, but rather to take their time finding the right house and to focus on getting their financing in place.

 

·     Most economists believe that home prices will continue to decline during 2009.  C.A.R. predicts that the median home price in California will decline an additional 6 percent next year.  Home buyers need to remember that real estate markets are local and prices differ neighborhood to neighborhood. Many REALTORS® advise their clients to visit communities that interest them, and to talk to homeowners, business owners, and financial institutions to become familiar with the area.

 

·     Credit restrictions and loan underwriting standards tightened during the credit crunch, resulting in mortgage loans taking longer to process and fund.  Most lenders are requiring more information about income, assets, and expenses than in previous years, so home buyers are advised to get preapproved for their mortgage loan instead of applying once they have identified their ideal home. (source CAR)

GREEN TIP: CLEAN YOUR FRIDGE'S COILS

Cleaning the back of your fridge--the coils and electric circuitry--increases energy efficiency. A refrigerator with dirty coils works harder, and that means an extra 25 percent more energy use and CO2 emissions as compared with a fridge with clean coils.

RADICAL SHIFT IN LIFESTYLE COMING

"I have been working with way too many clients over the last several months who are in severe financial straits. One thing that I keep reminding them of is that they have to stop judging themselves by what they have; rather, they need to judge themselves by who they are. Having to give up material things does not make anyone a bad person. Recognizing that they can still put food on the table, clothes on their family's back and a roof over their heads helps to put everything into perspective. Yes, we are going to have to undergo a radical shift in our American lifestyle. But, even with this shift, most of us will still be living far better than 95 percent of the other people on this planet. We should be very thankful."

 --Peter J. Pike

New Demands Make Mortgages Harder to Get ...

New Demands Make Mortgages Harder to Get 
Even home buyers with good credit are having trouble getting mortgages with terms they find attractive. 

Lenders are demanding much higher down payments, often about 20 percent, and sometimes even higher. Jumbo home loans, ranging from $417,000 up to $750,000, depending on the local market, are particularly hard to find because private banks are no longer investing in them.

Properties, as well as buyers, are facing extra scrutiny. Some lenders now require a second appraisal to reassure them of a property’s true value, slowing the buying process and increasing closing costs by hundreds of dollars.

Plus, the wave of consolidation among financial institutes has led to confusion and further delays over mortgage processing. 

Source: USA Today

Mortgage shock? Adjustable rates tied to LIBOR, COFI, other indexes

With approximately 60 percent of outstanding adjustable-rate mortgage (ARM) loans set to the London Inter Bank Offered Rate (LIBOR), nearly 25 percent linked to average yields on certain Treasury securities, and 15 percent set to measures like the Cost of Funds Index (COFI), more homeowners are reacquainting themselves with the type of ARM they have and considering refinancing options such as 30-year, fixed-rate loans.

· It is important that homeowners who have adjustable-rate mortgages (ARMs) are aware of the index to which their mortgage is linked, as this determines the monthly payments. Payments of loans tied to the LIBOR, which is in the interest rate that banks charge each other to borrow money, could increase if the loan resets in November or December because of the recent increase in the index's rate. Most ARMs are set to the one-month, three-month, or six-month LIBOR. Homeowners who are concerned about possible payment increases should contact their local bank, credit union, or mortgage broker to rewrite their ARM into one with a fixed interest rate, if possible.

· Rates on adjustable-rate mortgages are determined by two factors –the loan's index (LIBOR, COFI, Treasury) and the lender's margin. A guideline to help determine the new rate when a loan resets is to add the lender's margin to the new index. For example, if a homeowner's ARM resets according to the six-month LIBOR index, which was 3.70 percent as of Oct. 22, and the lender's margin is 2.5 percent, then the new rate would be 6.20 percent.

· Some mortgage brokers recommend that homeowners who have ARMs and are unaware of to which index their loan is set, should review their loan documents again to determine if they should consider refinancing into a new loan with a fixed rate or possibly one linked to a different index.

To read the full story, please click here:
http://www.mercurynews.com/localnewsheadlines/ci_10830812?source=rss

JUST LISTED

Green Tip of the Week: Front Loaded Savings

FRONT-LOADED SAVINGS
In the market for a new washing machine? Choose an ENERGY STAR variety, of course, but also opt for an horizontal-axis (front-loader) washing machine, which uses far less water and 60 percent less energy than top-loaders.

List of Lenders Who Are Participating in the HOPE for Homeowners (H4H) Program

List of Lenders Who Are Participating in the HOPE for Homeowners (H4H) Program

 

 

NOTE: Homeowners, contact your existing lender and/or a new lender to discuss how you may qualify for the H4H program.

The lenders listed below have indicated an interest in refinancing loans under the HOPE for Homeowners program.  When contacting any of the lenders listed below,you are strongly encouraged to contact your servicing lender and any subordinate lien holders since their participation is vital for you to refinance into a HOPE for Homeowners mortgage.  It is important to remember that the HOPE for Homeowners program is voluntary and your servicing lender may offer different solutions for avoiding foreclosure. 

When contacting any lender on this list, please use the contact information provided.  Do not give anyone money or pay any fees until you have spoken with your existing lender and know it is participating in the HOPE for Homeowners Program.

If you are experiencing difficulty in communicating with your current servicing lender and/or subordinate lien holders, you may wish to contact a housing counseling agency to ask for advice and assistance in reaching a mutually agreeable solution for avoiding foreclosure.

To view the list of lenders who are participating in the HOPE for Homeowners program click on the link below. Your browser will open a PDF document. 

The H4H Lender List was updated on October 28, 2008. We will refresh the list on most Fridays.  

CLICK HERE FOR THE UPDATED LIST LINK>>

http://portal.hud.gov/portal/page?_pageid=73,7605762&_dad=portal&_schema=PORTAL

 

GREEN TIP OF THE WEEK: RECHARGEABLE BATTERIES PLUG INTO USB PORTS

GREEN TIP OF THE WEEK: RECHARGEABLE BATTERIES PLUG INTO USB PORTS 
Want an alternative to using disposable batteries, which leak toxic wastes into landfills and ground water? USB Cell produces rechargeable AA batteries that do not require adapters or cables, but instead can be inserted into your laptop's USB port, or other USB port, and be recharged hundreds of times. Visithttp://usbcell.com/ or
http://www.terrapass.com/green-store/gadgets-chargers/ for more info.

October Gallery

Central Banks Coordinate Global Cut in Interest Rates

Central Banks Coordinate Global Cut in Interest Rates
Hoping to thaw the current credit freeze, the Federal Reserve, the European Central Bank, the Bank of England, and the central banks of Canada and Sweden reduced their primary lending rates by a half percentage point Wednesday. The Chinese central bank also reduced its key interest rate and lowered bank reserve requirements, while the Bank of Japan’s rates remained unchanged.

MAKING SENSE OF THE STORY FOR CONSUMERS

· The purpose of the rate cut is to increase consumer confidence, which in turn should help stimulate the economy. When consumers and businesses have more confidence in the economy, they usually spend more money, which bolsters the economy by enabling retailers to increase sales and prevent future layoffs.

· The Federal Reserve controls the interest rate that banks charge each other for short-term loans. Usually this leads to banks lowering the rates they charge consumers and businesses. The short-term loan-rate reduction, from 2 percent to 1.5 percent, should have an almost immediate effect on credit-card rates, according to financial analysts. Interest rates on automobile and business loans also should decline. Generally, the short-term loan-rate reduction also leads to a reduction in mortgage rates; however, it is too soon to predict if that will happen in this case given the way the market has reacted to recent economic news.

· Some credit card companies already have reduced their credit card rates. Although there may be room for further reductions for some consumers, many experts believe that only consumers with the best credit scores and payment history will benefit from the rate reduction. Most credit card companies deem consumers with high credit scores as providing the least amount of risk.

· Consumers with fixed-rate mortgages will not benefit from the rate cut; however, those with adjustable-rate mortgages (ARMs) may. When banks receive an interest rate cut, they may pass along the savings to consumers. Homeowners with ARMs could receive a payment reduction. (Source CAR)

''Making Real Estate Simple''

Barbara Wibe, e-PRO, REALTOR
Barbarainc@gmail.com
*** 619-850-4174 ***

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

GREEN TIP OF THE WEEK: RECYCLE WITHOUT RESERVATIONS

GREEN TIP OF THE WEEK: RECYCLE WITHOUT RESERVATIONS
If you've ever wondered if paper clips, staples, envelopes with adhesive, metal latches, or even plastic windows are recyclable, the answer is yes!

More Households Make Room for Extended Family

American households are becoming more multi-generational, according to a new report released Tuesday by the U.S. Census.

The number of heads of households who share their homes with their parents, brothers and sisters, and other relatives grew 42 percent from 2000 to 2007

The census finds a 75 percent increase in parents under the age of 65 who are now living with their adult children. In all, 3.6 million American households have made room for older parents. 

By state, Alaska had the highest number of parents moving in with their adult children – an increase of 167 percent, according to the data. South Dakota had the lowest – up 7 percent.

Sharing a home represents an old-fashioned approach to economic challenge, experts point out. Donna Butts, executive director of Generations United, an advocacy organization. 

"It is evolving in some ways back to how families used to live. That is, they're living in multi-generational households, " Butts said.

Source: ABC News, Barbara Pinto (09/23/08)

HOPE for Homeowners Expands Rescues

HOPE for Homeowners, a federal program to allow the replacement of up to $300 billion in underwater U.S. mortgages with federally backed FHA financing, began accepting applications under a legislatively authorized expansion Wednesday.

To qualify, borrowers must be spending more than 31 percent of their income on mortgage payments. Loans made this year are excluded, except for those completed on Jan 1. Borrowers must have made six months of payments on their loans.

Lenders must agree to participate and erase 10 percent of the home’s current value before the government will guarantee the mortgage. A concern among lenders is that investors in mortgage securities must take an immediate loss and can't recoup their lost money if home prices turn upward again.

The program is a "helpful step forward" in stabilizing the housing market and will help keep many families in their homes but it is not a cure-all, said Steve Preston, secretary of the U.S. Department of Housing and Urban Development, which administers the program.

Troubled borrowers should contact their lenders.

Source: Reuters (10/01/2008)

ATTENTION: Have you filed for bancrupcy lately?

Court Mandates Credit File Cleanup 

A recent court decision requires the three major credit-reporting bureaus — Experian Group Ltd., Equifax Inc., and TransUnion LLC — to clean up the credit files of consumers who have filed for Chapter 7 bankruptcy.

These bureaus are still reporting old debts as active on consumers’ credit reports even though they were wiped clean in a bankruptcy filing.

The U.S. District Court for the Central District of California gave the bureaus until Oct. 1 to revamp their systems. 

Consumers who have gone through Chapter 7 bankruptcy should request copies of their credit reports at a website like AnnualCreditReport.com and make sure that the old debuts have been removed.

The court-mandated changes come at a time when more consumers are filing for bankruptcy amid rising loan defaults and tighter credit standards. U.S. consumer bankruptcy filings jumped 29.2 percent to 96,413 in August, according to the American Bankruptcy Institute.

Source: The Wall Street Journal, Jane J. Kim (09/30/2008)

NEED HELP?

FACING FORECLOSURE?

HERE ARE A FEW HELPFUL RESOURCES:

http://www.hud.gov/foreclosure/

http://www.hopenow.com/

http://www.credabilityu.org/

http://www.creditcounseling.org/

GREEN TIP OF THE WEEK: LOVE THAT LINOLEUM

GREEN TIP OF THE WEEK: LOVE THAT LINOLEUM
If it's time to change the break room floor, opt for linoleum instead of vinyl. Linoleum is made from all-natural resources, while vinyl is made from petroleum

The Credit You Deserve – Getting a loan is harder, but it’s not impossible

The Credit You Deserve – Getting a loan is harder, but it’s not impossible
In light of the current situation with the credit market, obtaining financing has become more difficult than in previous years. Because of this, some consumers incorrectly assume that it is impossible to qualify for a mortgage loan, auto loan, or other financing. However, consumers who have good credit should remain optimistic about their loan choices.

MAKING SENSE OF THE STORY FOR CONSUMERS

· Most lenders have reinstated high credit standards, many of which were almost completely eliminated during the days of lax credit lending. Nowadays, most lenders require that consumers prove their ability to comfortably repay a loan, most often determined by their FICO scores. Most lenders require a FICO score of at least 720 to qualify for a mortgage loan. Consumers can receive a free credit report by visiting www.annualcreditreport.com. This Web site, created by the three nationwide consumer credit reporting companies -- Equifax, Experian and TransUnion -- provides consumers with their credit report, excluding their FICO score. Consumers can request their FICO score, for a fee of $16, by visitingwww.myfico.com.

· Even though some consumers may qualify for a new loan, some experts recommend that consumers who do not have emergency funds or are concerned about job security not take on additional debt obligations. However, consumers seeking to refinance a loan at a more favorable rate or repayment option, or those who wish to purchase their first house may benefit from the current low interest rates. Today’s rates, although higher than in previous weeks, are still at or near historic lows. Some experts predict that interest rates will remain low until the economy recovers.

· Consumers wanting to refinance their current mortgage, or purchase a home under the new permanent conforming loan limit of $625,500 -- effective Jan. 1, 2009 -- may best be served by their small local bank or credit union. These financial institutions often are in the best position to offer consumers a favorable or competitive interest rate. Consumers in California may qualify for conforming loans up to $729,750 until Dec. 31, 2008, as a result of the Economic Stimulus Act of 2008.

· Consumers seeking to refinance a mortgage loan or purchase a home with a jumbo loan -- loans greater than the prevailing conforming loan limit -- often will pay a percentage point or more than they would with conforming loans, according to bankrate.com. It also can be more difficult for consumers to find lenders offering jumbo loans. While consumers can check with their local small banks or credit unions to see if they offer jumbo loans, it is often best to work with a local mortgage broker or large national brokers, such as eloan.com when applying for a jumbo loan.

(Source: C.A.R.)